2006 (2) TMI 114 - KARNATAKA HIGH COURT

Computing the total income - interest accrued on the bank deposits - Revenue has preferred this appeal against the order passed by Tribunal, setting aside the orders passed by the assessing authority as well as the first appellate authority holding that the income earned by the respondent cannot be treated as income liable to tax, as the respondent is acting as a nodal agency for implementing certain Central and State Government projects. - in computing the total income of the assessee for any previous year the interest accrued on the bank deposits cannot be treated as an income of the assessee as the interest is earned out of the money given by the Government of India for the purpose of implementation of the mega city scheme - we do not find any error in the conclusion reached by the Tribunal that there was no income earned by way of interest by the assessee - finding given by the Tribunal is purely a question of fact. We do not find any substantial question of law involved in this appeal and therefore this appeal is liable to be dismissed at the stage of admission itself.